Pakistan links 40,000 missing pilgrim figures in Middle East to outdated paper records

Pakistan links 40,000 missing pilgrim figures in Middle East to outdated paper records
Pakistan Minister for Religious Affairs, Sardar Muhammad Yousaf, speaks during a press conference in Islamabad on May 23, 2025. (PID/File)
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Updated 18 July 2025
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Pakistan links 40,000 missing pilgrim figures in Middle East to outdated paper records

Pakistan links 40,000 missing pilgrim figures in Middle East to outdated paper records
  • Religious affairs minister says his ‘missing pilgrims’ remark did not imply mass disappearances in the region
  • Pakistan has unveiled a new system for pilgrims traveling to Iran, Iraq and Syria to improve record keeping

ISLAMABAD: Pakistan’s religious affairs minister, Sardar Muhammad Yousaf, on Friday downplayed his earlier remarks about “40,000 missing pilgrims” in the Middle East, saying the number reflected outdated travel records, not mass disappearances, amid growing scrutiny of undocumented religious travelers in the region.

The clarification follows media reports, citing official data, that around 40,000 Pakistani pilgrims to Iran, Iraq and Syria had either gone missing or overstayed in the past decade, prompting the government to draft a new pilgrimage monitoring policy and raise the issue with host countries.

Each year, thousands of Pakistani Shia pilgrims travel to religious shrines in these countries, but host governments have repeatedly flagged the issue of undocumented or unreturned visitors.

Speaking to Arab News a day earlier, Mustafa Jamal Kazi, Director General of Immigration and Passports, said most of the disappearances occurred in Iraq due to the lure of employment in its booming construction sector, and that the exploitation of religious tourism for begging was among the most common motives for absconding.

He also confirmed the officially stated number of missing pilgrims, saying these people “never returned during the last almost one decade.”

“My reference to 40,000 pilgrims was never intended to give the impression that thousands of Pakistanis are missing abroad,” the religious affairs minister said in a statement. “The real issue is that older paper records have not yet been fully transferred to our central digital registry.”

He said the religious affairs ministry had launched a modern digital portal where pilgrims and group organizers are issued QR-coded e-cards, allowing families and the government to access real-time travel data.

“This step will eliminate room for misunderstanding or propaganda, and ensure timely sharing of pilgrim data with officials in Iran, Iraq, and Syria,” the minister said, calling the move a key measure toward secure and accountable pilgrimage.

Yousaf also appealed to tour operators and prospective pilgrims to register their information on the new system by August 31 to avoid being flagged as part of “incomplete lists.”

“Our goal is to make every Pakistani’s journey safe,” he said. “Let’s work together to show the world that our records are transparent and that Pakistan is using modern technology to ensure responsible oversight.”

As part of broader reforms, the government has also abolished the traditional “Salar system” — in which private group leaders managed logistics — and introduced a centralized framework under the new Ziyarat Management Policy, holding licensed organizers accountable for each pilgrim’s return.


Mortar kills 2 children, mother in northwest Pakistan where troops are targeting militants

Mortar kills 2 children, mother in northwest Pakistan where troops are targeting militants
Updated 52 sec ago
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Mortar kills 2 children, mother in northwest Pakistan where troops are targeting militants

Mortar kills 2 children, mother in northwest Pakistan where troops are targeting militants
  • It was not immediately clear who was responsible for the overnight civilian casualties in Mamund
  • Angered by the deaths, hundreds of demonstrators were refusing to bury bodies and demanding a probe

KHAR, Pakistan: A mortar struck a home and killed two children and their mother in a northwestern Pakistani region where security forces are carrying out a “targeted operation ” against the Pakistani Taliban, residents and a hospital official said Wednesday.

It was not immediately clear who was responsible for the overnight civilian casualties in Mamund, a town in the Bajaur district of Khyber Pakhtunkhwa province bordering Afghanistan.

Naseeb Gul, a medical doctor at a local hospital, said the dead were two children and their mother. Two people were also wounded Tuesday when another mortar hit their home, he said.

Angered by the deaths, hundreds of demonstrators were refusing to bury the bodies and demanding an investigation, according to local villager Mohammad Khalid.

There was no immediate comment from the government or the military.

The latest development came days after security forces launched an offensive in Bajaur to target militant hideouts. The provincial government said the “targeted operation” was launched after tribal elders failed to evict insurgents from the region.

Government officials said the ongoing offensive against the Pakistani Taliban has displaced 25,000 families or an estimated 100,000 people in Bajaur, where authorities eased a curfew on Wednesday, allowing residents to buy essential items.

Thousands of displaced people are currently residing in government buildings, and many other have gone to other safer areas to live with relatives.

The Bajaur offensive is the second operation there since 2009, when the military launched a large-scale campaign against the Pakistani Taliban, also known as Tehreek-e-Taliban Pakistan, or TTP. The TTP is a separate but a close ally of the Afghan Taliban, who seized power in Afghanistan in August 2021.

Many TTP leaders and fighters have found sanctuary in Afghanistan since the Taliban takeover and have been living there openly. Some have crossed the border back into Bajaur to carry out attacks.


Pakistan finance minister eyes cut to key policy rate from 11 percent

Pakistan finance minister eyes cut to key policy rate from 11 percent
Updated 12 min 10 sec ago
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Pakistan finance minister eyes cut to key policy rate from 11 percent

Pakistan finance minister eyes cut to key policy rate from 11 percent
  • The next policy rate announcement is due on September 15
  • Central bank left its key interest rate unchanged at 11 percent on July 30

ISLAMABAD: Pakistan’s finance minister said on Wednesday that there was more room for the central bank to cut the country’s key policy rate down from 11 percent.

“We are hopeful of progress in terms of the policy rate going south,” Mohammed Aurangzeb said at an event in Islamabad.

The next policy rate announcement is due on September 15, according to the State Bank of Pakistan’s calendar.

The central bank left its key interest rate unchanged at 11 percent on July 30, going against analyst expectations. In a Reuters poll ahead of the policy rate announcement, all 15 analysts said they expected the bank to ease, with nine forecasting a 50 basis-point cut, four predicting a deeper 100 basis-point reduction and two projecting a smaller 25 basis-point cut.

The bank, however, held the rate steady, saying the inflation outlook had deteriorated due to rising energy prices.


Pakistan saves billions through UK-backed governance reforms — BHC

Pakistan saves billions through UK-backed governance reforms — BHC
Updated 13 August 2025
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Pakistan saves billions through UK-backed governance reforms — BHC

Pakistan saves billions through UK-backed governance reforms — BHC
  • UK program unlocked about $2.41 billion in public finance across Punjab, KP provinces between 2019 and 2025
  • Punjab’s new contributory pensions scheme projected to save around $9.72 billion over the next 30 years

ISLAMABAD: Pakistan’s provincial governments in Punjab and Khyber Pakhtunkhwa (KP) have saved billions of rupees and unlocked significant new resources for development under a landmark British-backed governance program that concluded this year, the British High Commission said on Wednesday.

The UK’s Sub-National Governance Program, which ran from 2019 to 2025, worked with provincial authorities to improve planning, budgeting and revenue mobilization.

According to the High Commission, the program unlocked over £1.9 billion ($2.41 billion) in public finance, allowing savings to be reinvested into other public services.

In Punjab, a comprehensive pensions reform plan was introduced, shifting to a contributory scheme with both employer and employee payments, expected to save the government of Punjab Rs 2.7 trillion. ($9.72 billion) over the next 30 years. In KP, the program supported an overhaul of waste management systems, introducing sustainable door-to-door collection now being scaled up across the province.

“This program shows what is possible when strong partnerships come together to support long-term reform, changing people’s lives,” British High Commission Development Director Sam Waldock said.

“We’ve strengthened institutions, improved service delivery, and helped Pakistan unlock more of its resources to finance its own development. That has led to direct improvements to the day to day lives of millions — from helping people to access essential cash assistance, to creating waste management systems which makes their surroundings cleaner and more hygienic.”

The statement said the reforms also strengthened social protection systems in Punjab by collecting social and economic data for 35 million residents, enabling the government to better target urgent cash assistance and food subsidies.

The program helped design and roll out initiatives such as Ba-Himmat Buzurg, which offers financial assistance to elderly people with no source of income, and the Himmat Card, which provides financial support for people with disabilities.

The UK’s work on governance reform in Pakistan will now continue under the new National Governance Program, in collaboration with the UN Development Program, with a focus on sustained institutional reform and improved public financial management, including further provincial pension reforms.

The UK is one of Pakistan’s largest bilateral development partners, with cooperation spanning education, health, climate resilience, governance reform and trade. The UK is also home to one of the largest Pakistani diasporas, estimated at over 1.6 million people, who contribute significantly to remittances, business and cultural links.

In 2024, total trade in goods and services between the UK and Pakistan was £4.7 billion ($5.97 billion), up 7.3 percent from the previous year.


Pakistan to cut auto tariffs over 5 years, eyes car exports after tractors and motorcycles

Pakistan to cut auto tariffs over 5 years, eyes car exports after tractors and motorcycles
Updated 13 August 2025
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Pakistan to cut auto tariffs over 5 years, eyes car exports after tractors and motorcycles

Pakistan to cut auto tariffs over 5 years, eyes car exports after tractors and motorcycles
  • Commerce minister forms committee with key ministries to address auto industry challenges
  • US tariff reduction deal seen as creating new opportunities for Pakistani auto exports

ISLAMABAD: Pakistan will gradually cut tariffs on the auto sector over the next five years and work on a strategy to expand exports, Commerce Minister Jam Kamal Khan told industry representatives on Wednesday, as the government seeks to strengthen the local market and boost overseas sales.

Khan met auto industry stakeholders in Islamabad and announced the formation of a committee, comprising officials from the Commerce Ministry, the Federal Board of Revenue and the Ministry of Industries, to address sector challenges. The minister invited the industry to participate in the upcoming industrial policy and said healthy competition was increasing in Pakistan’s auto market.

“After tractors and motorcycles, we will now also export cars,” Khan said, adding that the government would prepare “a strategy for the development and exports of the auto sector” and that tariffs “will be gradually reduced over the next five years.”

Khan said imported used cars should meet quality and environment-friendly standards and linked new export prospects to a recently signed US tariff reduction agreement. Under the deal, Washington has cut import duties on Pakistani goods to 19 percent, a move the government says will improve competitiveness for products including automobiles. 

“The tariff reduction agreement with the US has created new opportunities for auto exports,” the minister said.

Industry representatives told the meeting that new technologies had increased production costs, and urged protection for local manufacturers from the import of used vehicles.

Pakistan’s automobile industry is one of the fastest-growing sectors, contributing around 7 percent of Large Scale Manufacturing (LSM) and accounting for 7–16 percent of the manufacturing GDP depending on the metric used. It employs millions, and local assembly is dominated by established players like Honda, Toyota, Suzuki, Hyundai, Kia, and newcomers such as MG and Haval.

The market includes motorcycles, tractors, cars, and commercial vehicles, but remains highly concentrated among a few brands.

The fiscal year 2025–26 budget introduced several changes impacting the auto industry. A new Green Tax was applied to internal combustion engine vehicles, ranging from 1 percent to 3 percent of vehicle value depending on engine size and origin .

The industry also flagged an imbalance in GST rates — 8.5 percent on hybrid electric vehicles versus 18 percent on fully electric vehicles — raising concerns over a policy disconnect with the Automotive Industry Development and Export Policy (AIDEP) 2021–2026 provisions.

Experts warn that high taxes, policy uncertainty, and weak industrial support were curbing demand. Recent vehicle sales dropped 49 percent month-on‑month in July 2025, partly due to pre-budget rushes and subsequent tax adjustments  .

The sector also faces structural challenges including limited localization of parts, high production costs, and fragile capacity utilization (around 24 percent). Policy instability, particularly regarding tariff reductions and fiscal incentives, risks discouraging investment, and experts say long-term industrial support is necessary to prevent local manufacturing decline.

Inflation, currency volatility, and macroeconomic uncertainty further weigh on consumer demand and financing.


Pakistan unveils national AI policy to boost innovation, jobs and ethical governance

Pakistan unveils national AI policy to boost innovation, jobs and ethical governance
Updated 13 August 2025
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Pakistan unveils national AI policy to boost innovation, jobs and ethical governance

Pakistan unveils national AI policy to boost innovation, jobs and ethical governance
  • Policy sets up National AI Fund, aims to train one million people in AI skills by 2027
  • Framework to align with UN goals and ensure ethical and responsible AI use

KARACHI: Pakistan has announced its first National Artificial Intelligence Policy, a wide-ranging plan seen by Arab News to develop AI infrastructure, train one million people in related skills and ensure responsible, ethical use of the technology in line with global standards.

The Ministry of IT & Telecom shared a copy of the new policy with media on Wednesday and said the policy is designed to transform the country into a “knowledge-based economy” through investment in research, innovation, and skills, while safeguarding personal data and human rights.

The “National Artificial Intelligence Policy – 2025” lays out a six-pillar framework covering AI innovation, public awareness, secure systems, sectoral transformation, infrastructure and international partnerships. It creates a National AI Fund by permanently allocating 30 percent of the R&D Fund managed by Ignite, a government-run technology financing body that supports research, startups and innovation in Pakistan’s ICT sector.

The policy also establishes Centers of Excellence in AI in major cities and sets targets for 90 percent public awareness of AI by 2026.

The plan aligns with the “AI for Good” initiative of the International Telecommunication Union and the UN Sustainable Development Goals.

“The Artificial Intelligence (AI) Policy 2025 is a pivotal milestone for transforming Pakistan into a knowledge-based economy,” the foreword to the policy document says, adding that it will “establish an ecosystem necessary for AI adoption … by ensuring responsible and ethical use of AI.”

Under the plan, the Centers of Excellence will “facilitate demand-driven research and development in AI and allied technologies that align with national priorities,” provide access to advanced computing labs and run incubation and training programs.

On security, the government will develop AI-integrated security guidelines for end-to-end protection during the development and deployment of AI systems and mandate “transparency and disclosure of the use of AI systems” in the public sector.

Internationally, Pakistan will seek bilateral and multilateral agreements with AI-leading nations, participate in global AI forums, and “align Pakistan’s AI regulations and standards with international best practices to ensure interoperability, data privacy, and security.”

The Ministry of IT & Telecom said the policy’s implementation would be overseen by an AI Council chaired by the federal IT minister, with representation from academia, industry, provincial governments and civil society.

Pakistan is trying to make strides in modernizing its digital infrastructure and fostering an innovation-driven economy.

Under the “Uraan Pakistan” five-year National Economic Transformation Plan (2024–29), the government is prioritizing digital transformation by expanding ICT exports, supporting freelancing, and establishing a “Quantum Valley” focused on high-tech innovation.

This broader strategy is reinforced by efforts to digitize governance and public services: projects such as AI‑powered surveillance systems in Islamabad’s “Safe City” program, the rollout of a Power Equipment Manufacturing Dashboard, and the launch of Zong’s locally hosted AI-powered cloud platform exemplify the push to modernize both security and enterprise infrastructure.

Complementing these, the State Bank of Pakistan is piloting a central bank digital currency (digital rupee), with legislation nearly finalized to license and regulate virtual assets, aiming to integrate digital payments into the mainstream financial ecosystem.

On the cryptocurrency front, Pakistan is trying to evolve from regulatory ambiguity to institutional innovation. In March 2025, the government established the Pakistan Crypto Council (PCC) to shape blockchain policy and digital asset regulation, with key figures like Bilal Bin Saqib as CEO and strategic adviser Changpeng Zhao, Binance co‑founder, contributing technical and governance expertise.

In May, Pakistan unveiled a Strategic Bitcoin Reserve, committing to hold bitcoin in a sovereign wallet without plans to sell, while also earmarking 2,000 MW of surplus electricity for bitcoin mining and AI data centers — part of a broader push to convert energy surplus into digital economy infrastructure.

The Virtual Assets Act, 2025, enacted in July, created the Pakistan Virtual Asset Regulatory Authority (PVARA) to license and oversee crypto businesses under FATF-aligned standards .

Meanwhile, adoption is accelerating. Crypto users are projected to surpass 27 million by year-end, with digital asset revenues approaching $1.6 billion.

Reports also suggest that Pakistan is fast-tracking crypto integration into formal sectors like banking, foreign exchange, and even gold trading, signaling a strategic leap toward mainstream crypto incorporation.